Critique case study analysis :Team C
osita2017
VerizonPowerpoint-TeamC.pptx
BUSINESS IMPROVEMENT
TEAM C
Telecommunications industry fast-paced technology driven industry
Verizon’s leadership team is challenged with evolving their structure and culture to remain agile and innovative within the mobile category
Significant departure from their traditional core telecommunications business
Significant changes and strategies were implemented, with both success and failure
INTRODUCTION
INTRODUCTION
BACKGROUND
NEED FOR CHANGE
CHANGE IMPLEMENTATION
RESULTS
RECOMMENDATIONS
AGENDA
BACKGROUND
Verizon was formed in the year 2000 as a result of a
merger between Bell Atlantic Corp. and GTE Corp.
Originally specialized in analog and landline communications to customers, and soon evolved to providing digital, wireless and broadband for smartphone use in 2003
Verizon divided into two divisions, Verizon Telecommunications (Wireline) and Verizon Wireless to remain competitive
In 2008 Verizon Wireless initiated a partnership with Google, which helped put Android on the mobile map
In 2011, Verizon was the largest carrier service to over 95 million consumers in the USA
NEED FOR CHANGE
NEED FOR CHANGE
CEO McAdams analysis of global telecommunications industry showed a change from analogue, online and narrowband to digital, wireless and broadband.
The industry was also moving towards Smartphone. Smartphone customers increased as the years went by and suppliers of Smartphone were seeing a tremendous increase in revenues
The main competitors as established were AT & T in the wireless, Cable Vision in terms of cable operators, Voice over internet protocol providers like Vonage and other communication companies.
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CEO MsAdams to launch a culture statement along time lines of shared values and shared success as the catalyst to integration of the company.
NEED FOR CHANGE
Verizon had two different cultures; the wireless and wireline business. With the onslaught of the wireless business the wireline business was losing its cutomer base swiftly
Company was losing its customer base owing to the fact that it was slower, plus there was more bureaucracy. The revenue for the wireless business was rising whilst that of the wireline was falling steadily
The company was faced with the decision to ensure that both wireline and wireless networks develop new products to monetize these networks
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NEED FOR CHANGE
A proposal to Google, along with device manufacturer and as such they
reached out to T Mobile. The three decided that the product had to be in
the market in a year’s time and they went to work rigorously.
The company had to spend $100 million on buying media before the
product was perfected. Verizon was able to launch its Verizon Droid only
two weeks behind schedule
Main requirements for change derived from the to find a gadget that
would be the answer to Apples iPhone. Several options were looked at
shelved
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NEED FOR CHANGE
To become global, Verizon partnered with China Mobile, the largest wireless operator in the world
There was a major challenge as the company wanted to make Verizon One, a more integrated network. The growth of the wireless business made it difficult to them to grow the wireline business and this provided an in company competition between the two networks
CEO McAdams launched a culture statement along to reinforce shared values and shared success as the catalyst to integration of the company
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CHANGE IMPLEMENTATION
CHANGE IMPLEMENTATION
Key players –
Key players in the Verizon’s organizational change were:
The new CEO Lowell McAdam’s
The former CEO Ivan Seidenberg
Janet Schijns.
Implementation of the change –
The implementation commenced with a series of acquisitions and a strategic repositioning of the company.
McAdam strived for globalization as a result of the telecommunications industry moving from landline, analogue and narrowband to digital, wireless and broadband.
CHANGE PROCESS
(Kanter, R.M., & Bird, M. 2011)
CHANGE IMPLEMENTATION
Keeping wireless & wireline companies under Verizon Communications separate allowing them to grow without being smothered by the already established wireline industry.
Verizon had two different organizational cultures tied directly to either its wireline business or wireless business to avoid wireline business’s loss of its customer base since the wireless business was more entrepreneurial, was faster and was more flexible.
Adaptive challenges & the process to overcome them led to Verizon’s success as they never second guessed in solving their challenges. The industry was shifting at high speed 2003 to 2010.
Despite these changes, the CEO wasn’t methodical in his approach. He had to tackle regulatory issues of traditional telecommunication that has cast a long shadow on wireline.
(Kanter, R.M., & Bird, M. 2011)
RESULTS
RESULTS
SUCCESSES
Share Holder Value & Shared Success
Increased quarterly dialogue with top leaders
Reduction of duplication, and alignment reducing costs and increasing efficiency
Increased stock price better positioned the company
Process Improvement
Increased innovation speed
Aligning organization around fewer but more critical projects released resources
Improved efficiency by 30%
RESULTS
SUCCESS
“98% of employees were aware of credo”
“96% accountable for demonstrating it in their day to day work”
“91% believed the credo will deilver superior customer service”
FAILURE
Culture was not shifting in Wireline division
Two week strike in Aug 2011 involving 45,000 union employees in Easter US regarding flexibility in work rules and employees contributions to health-care premiums
Culture – One Verizon Credo Statement
RECOMMENDATIONS
“…diagnosis is about learning: learning what needs to be changed and why.” - Spector, 2013
RECOMMENDATIONS
#1 - Establish a Diagnostic Framework
Verizon competes in fast paced technology industry, and required a framework to guide culture change
Employee culture is shaped by organizational design, which should serve organizational strategy.
Diagnostic framework will focus attention on the multiple elements that contribute to success such as the core competency of wireline, and innovative culture in wireless
Employee behaviors do not reflect the strategy so the framework would drive employees into analyzing the linkages that have created misalignments.
(Spector, 2013)
RECOMMENDATIONS
#2 – Mutual Engagement and Shared Diagnosis
Shared diagnosis will create an opportunity for mutual agreement and adjustment, laying the groundwork for the culture change at Wireline conducive to innovation
Involving employees in the process through dialogue creates an understanding beyond the individual level creating a shared experience amongst multiple participants
There was likely a large power distance between employees and the cascading hierarchies.
Removing the hierarchies in the Wireline division would create an opportunity for more open dialogue and create a culture conducive to innovation
(Spector, 2013)
RECOMMENDATIONS
#3 – Unfreezing Activities
Multiple simultaneous changes at a fast pace created confusion with some programs and integration issues amongst employees and customers.
Measuring the integration and culture shift experienced by the two business units prior to introducing a new product would have shown that the units weren’t in a place to deliver an integrative product successfully
Developing a measurement program, and creating employee engagement programs through training and rewards may have eliminated some of the discrepancies
(Spector, 2013)
Verizon recognized the need to remain competitive by becoming more risk adverse and innovative.
Establishing a strategic framework to guide implementation would have reducing confusion that was faced in the two business units, and felt by consumers
Conducting organizational research through shared diagnosis would have created an opportunity for mutual agreement and adjustment
Ensuring proper training and rewards programs, and measuring success will set the organization up for greater success.
CONCLUSIONS
Thank you.
REFERENCES
Kanter, R.M., & Bird, M. (2011). Transforming Verizon: A platform for change. Harvard Business Publishing. 9-312-082. Retrieved from https://hbr.org/product/transforming-verizon-a-platform-for-change/312082-PDF-ENG
Spector, B. (2. Implementing 013) Organizational Change, 3rd Edition. [Bookshelf Online]. Retrieved from https://bookshelf.vitalsource.com/#/books/9780133467994/
www.accurateessays.com: Transforming Verizon: A Platform for Change
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